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Downstream dream is long-term solution for professional indemnification

13 March 2014

A little over two years NAID launched Downstream Data Coverage. The association will be stepping up its educational promotion of one of the most potentially beneficial initiatives the organization has ever attempted.

“It’s not every day that an organization tries to materially change the way its industry buys professional liability insurance,” said NAID CEO Bob Johnson. “But the payoff to members is so great that it’s worth the trouble. The first thing we had to do was get the coverage right. That was relatively straightforward and many forward-thinking members quickly recognized that benefit. Now it’s time for phase two: broader acceptance.”

Phase two, as Johnson referred to it, is where enough members support the program, allowing NAID to transition it into a member-owned risk retention group. This will allow the members of the association to have greater influence over premiums.

“Members will continue to pay too much for professional liability coverage until enough of them see the merit of take control,” added Johnson. “Professional liability coverage will eventually be a requirement of all service providers. No one has more to gain from Downstream’s success than NAID members and no one has more to lose if the program doesn’t succeed.”

Johnson also said he is gratified to see those who are supporting Downstream getting some major, short-term benefits from it as well.

He added, “In the near term, it’s nice to see Downstream Data Coverage is proving to be one of the most effective market distinguishers. It will make the future role of the policy that much sweeter.”